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It’s my honor to run for the Goldbelt Board of Directors in this year’s 2017 election cycle. When I submitted my campaign application in February, I thought Goldbelt had been maintaining or increasing their net income.

Unfortunately, when I opened the Annual Report in April, I learned that Goldbelt not only failed to maintain its net income from 2015 but lost significant revenue and increased costs.

Evolved Campaign Commitments

I have now evolved my campaign platform because Goldbelt no longer has the net income to invest in the Shareholder Programs I hoped to accomplish. See the Annual Report, and Proxy Statement Goldbelt mailed out for these campaign commitments.

Now, my primary goal is to bring back Common-Sense Oversight and Management of Goldbelt by:

  1. Re-establishing firm control and management of CEO and Executive team, by ensuring costs are contained, and revenue targets are being met.
  2. Implementing accountability of CEO and Executive team’s performance. Our CEO must take responsibility for Goldbelt’s poor performance and the contributing factors causing it.
  3. Re-establishing Board oversight of CEO’s execution and performance of the Board’s strategic goals.
  4. Containing and monitoring operational costs of federal contracting business units by ensuring adequate net income for Goldbelt.
  5. Dramatically increasing scholarships funding.
  6. Expanding the internship program, partnering with other companies that provide internships to shareholders in desired geographic locations and industries.
  7. Implementing a mentorship program that helps all shareholders reach their employment goals.
  8. After re-establishing healthy net income, then increasing shareholder investments for shareholder economic prosperity.

I’m gravely concerned about Goldbelt’s poor financial performance for 2016 in these key areas:

  1. Less Revenue: Goldbelt, Inc. had $16.6 million LESS in REVENUE for 2016 from 2015.
  2. Costs for Contracted Services Increased by 12%: The cost of contracted services was up $21.7 million, causing total expenses to go up by $19 million for 2016 from the previous year.
  3. Income Reduced: This DECREASE in revenue and INCREASE in costs reduced Income from Operations by over $3 million or off 72% from 2015 figures.
  4. Income from Operations Down: In 2015, Goldbelt Income from Operations was $4.2 million, but now it was down to $1.1 million.
  5. Goldbelt’s Total Earnings down by 72% from 2015: These significant financial changes REDUCED GBI net income from $1.4 million in 2015 down to only $214,165 or an 85% loss from 2015 to 2016.
  6. How did this affect GBI Shareholders? Our net income per share went down significantly from $5 per to only $1 per in 2016, down 80%.

What’s Happening at Goldbelt?

I’m alarmed that CEO was allowed to increase costs while only growing revenue by 8%.

Annual Bonuses

I’m very concerned that Management insisted on annual bonuses when Goldbelt’s revenue was down $16.6 million from 2015 to 2016.

Budgeting to Break-even for 2017

I’m stunned that the majority of the Board allowed its CEO to budget a small, single-digit net income percentage, budgeting to barely breaking even for 2017. If one or two federal contracting deals fall through, Goldbelt misses their revenue targets. The result will be: Goldbelt will be in the red.

Board’s Strategic Priorities

  1. The majority of the Board has taken their eyes off the ball in pursuing the Board’s strategic priorities.
  2. The Board approved strategic priorities in 2014-15. As Chair in 2015-2016, I created a special committee to oversee the CEO’s performance in meeting these strategic goals. This committee no longer exists today.
  3. To date, the majority on the Board is not tracking the CEO’s performance against these strategic goals.

Scholarship Funding Reduction

I want to increase shareholder investment in scholarships dramatically. In 2016, the Board allowed a reduction in funding the scholarships program of $180k down to $140k in 2016. $600 for each scholarship recipient isn’t enough for books to let alone pay for tuition or other costs.

The Goldbelt Board of Directors must put shareholders first, by protecting the Shareholders’ financial resources.

Vote for Strong Board Oversight

I ask for your vote in my bid for a position on the Board of Directors. Shareholders must draw a line in the sand by creating a Board that will protect their interests. With your vote, Shareholders can start building the next generation of the Board, dedicated to asserting itself for the good of our Shareholders.

Thank you for your consideration!

Send in Your Proxies

Please remember to submit your signed and dated proxy by June 1, 2017, at 5:00 pm Alaska time. You can submit your signed proxy by:

  1. Mailing to the address on self-addressed envelope; or
  2. Emailing a scanned copy to dave@dapcevich.com; or
  3. Faxing signed proxy to 877-938-1777.

A second or third proxy does not affect your eligibility for the early bird drawing. Get your proxies to the Inspector of Elections by 5:00 pm Alaska time on May 26 to be eligible for a chance to win one of the Early Bird prizes:

  • $2,000 cash – one winner
  • $1,500 cash – two winners
  • $1,000 cash – two winners
  • $500 cash – two winners
  • $250 cash – 10 winners
  • $100 cash – 11 winners
  • Case of smoked salmon – Two winners

If you need another proxy or have questions, please email me at lorimgrant81@gmail.com or call me at 206-400-7541.